Prediction Markets Legal Status Tracker

Are prediction markets legal in every state? Regulators around the country have been telling Kalshi, Crypto.com and Robinhood to stop offering sports betting. Here's where things stand.

Kalshi, Robinhood and Crypto.com started offering sports event trading in recent months, letting people bet on sports events like championships and winners of games.

Many states believe the three platforms have been offering sports betting illegally within their borders and have sent them cease-and-desist letters. Others have said mentioned that they are looking at the practice of sports betting via prediction markets, but haven’t yet acted.

Here is where things stand at the top level:

• There are seven states that have sent cease-and-desist letters to some cohort of Kalshi, Crypto.com and Robinhood.

  • Kalshi has not exited any states with its sports product.

  • It doesn’t appear that Crypto.com has either.

  • Robinhood has said it has stopped offering sports event trading in some states but to my knowledge has not confirmed all six of these states (emails from The Event Horizon have gone unreturned).

State updates for prediction markets

State name with latest status, followed by news/backstory:

• Arizona (C&D issued): Backstory.

  • No deadline for compliance was given.

  • No lawsuit has been filed yet, to The Event Horizon’s knowledge.

• Illinois (C&D issued): Backstory.

  • There is no stated timeline for compliance; no lawsuit has been filed yet, to The Event Horizon’s knowledge.

  • Illinois had reportedly given Kalshi more time, but that extension has come and gone.

• Montana (C&D issued): Backstory

  • There is no deadline for compliance. No lawsuit has been filed yet, to The Event Horizon’s knowledge.

• Maryland (C&D issued plus lawsuit): Backstory

  • Kalshi filed a lawsuit against Maryland.

  • There is a hearing schedule with briefs due in May.

  • Maryland and Kalshi have now offered briefs in the case.

• Nevada (C&D issued, Kalshi lawsuit in federal court): Backstory

  • The judge in the federal case issued a preliminary injunction to stop Nevada from an attempt to enforce the cease and desist.

  • Nevada has filed a motion to dismiss Kalshi’s complaint, and Kalshi has responded.

  • The Nevada Resort Association has filed to intervene in the case.

• New Jersey (C&D issued, Kalshi lawsuit in federal court): Backstory

  • The judge in the federal case issued a preliminary injunction to stop Nevada from an attempt to enforce the cease and desist.

  • New Jersey has appealed to the Third Circuit Court of Appeals.

• Ohio (C&D issued): Backstory.

  • The platforms had until April 14 to respond or comply, but more time has been given.

  • No lawsuit has been filed yet, to The Event Horizon’s knowledge.

Investigations into prediction markets

There are several states where there are reported investigations into Kalshi ongoing or regulators are “monitoring” the situation:

• Connecticut

• Kansas

• Louisiana

• Massachusetts

• Michigan: Sent letter to Commodity Futures Trading Commission.

• Tennessee: Sent letter to CFTC.

• Washington state